Saginaw considers increasing water customers' deposits from $100 to $150 due to unpaid bills

A sample water meter at Saginaw City Hall is like many inside local residents' homes. Saginaw City Council is considering an increase to the deposit required of city water customers, from $100 to $150.Mark Tower | MLive.com

SAGINAW, MI — Saginaw leaders are considering an increase to the deposit charged new water customers.

The increase, from $100 to $150, is meant to offset the high number of water bills left unpaid each year, according to a report from city staff.

"It has been 100 dollars for the last, at least, 10 years I believe," City Manager Tim Morales told Saginaw City Council during its Monday, July 7, meeting.

City Council voted Monday to introduce the amendment to city ordinances necessary to increase the minimum deposit. The matter will come back to City Council for final consideration at its next meeting.

Morales explained that the possibility of increasing the deposit came out of a meeting with Saginaw's landlords. He said the idea was that a higher deposit could provide landlords with some protection when a tenant leaves them with a high unpaid water bill.

"It helps protect landlords," Morales said. "I think this shows our willingness to work with the landlords. And it also it protects the water and sewer departments, in the event that a homeowner may abandon his property."

Some members of City Council suggested the deposit be increased to more than $150.

Councilman Floyd Kloc argued that many delinquent water customers rack up bills much higher than that, and that the deposit should be higher to properly protect the city against those kind of losses.

Councilmen Larry Coulouris and Demond Tibbs also voiced a desire to see a higher deposit.

"One hundred and fifty dollars does not protect the water department," Coulouris said.

Morales pointed out that the ordinance language gives the city's finance director authority to set higher deposits for customers with a history of not paying water bills on time.

The city manager explained the amount stipulated in the ordinance, which he is requesting be increased from $100 to $150, is merely a "minimum" and that the city already charges some customers a higher deposit due to their payment history.

"The language clearly gives autonomy to the director of finance to make that call," Mayor Pro Tem Amos O'Neal said.

Councilwoman Brenda Moore pointed out that having a minimum deposit much higher than $150 could make moving into a home in the city financially difficult for some.

Mayor Dennis Browning added that he does not want to place the burden onto responsible homeowners and renters because some people are not paying their water bills.

"The large majority of water customers pay on time," Browning said. "We're raising this because the few who are negligent."

For that reason, the mayor said he supports increasing the minimum deposit to $150, but not higher than that.

In response to a request from Kloc, Morales said he could collect information about the dollar amounts associated with the average delinquent water bill.

Kloc also asked for more information about the criteria city staff is using to determine whether or not a resident should pay a deposit higher than the minimum.

All seven members of City Council present Monday voted in favor of introducing the ordinance amendment for consideration at a future meeting.

Councilman Dan Fitzpatrick and Councilwoman Annie Boensch were absent from the meeting Monday.

If the increase is approved by City Council at its next meeting, it would only apply to new city water customers and customers moving from one address in the city to another. Customers with a $100 deposit already on file would not need to pay any increase as a result of the ordinance change, Morales said.